Softs Report - Wednesday, Dec. 2

COTTON
General Comments: Cotton closed slightly higher in consolidation trading. Harvest is ongoing amid drier weather conditions in West Texas and the Delta and Southeast. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive winds and rains caused by the hurricanes, but these crops have had chances to recover damaged quality now. The rains and winds could have damaged fiber and blown fiber out of the bolls. Export demand was strong last week and there4 re some ideas that the export demand could stay stronger as the vaccines are developed and distributed. Ideas are that economic activity will greatly improve once the vaccines become readily available in several months from now.
Overnight News: The Delta and Southeast will get mostly dry conditions except for some showers on Thursday in the Delta and Friday in the Southeast. Temperatures should average near to below normal in the Delta and in the Southeast. Texas will have mostly dry conditions and below normal temperatures. The USDA average price is now 67.69 ct/lb. ICE said that certified stocks are now 112,728 bales, from 117,293 bales yesterday. ICE said that 17 notices were posted for delivery against December contracts and that total deliveries for the month are now 292 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 7190, 7100, and 7020 March, with resistance of 7350, 7430 and 7470 March.

FCOJ
General Comments: FCOJ was lower after failing to take out resistance just above the highs of the day. There was no real reason to rally the market any more. Florida has not seen any hurricanes or other serious storms this year in a year that has been very active for tropical storms. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is dining out. The weather in Florida is generally good with frequent showers to promote good tree health and fruit formation. Brazil has been too dry and irrigation is being used. Showers are falling in Brazil now and these need to continue to ensure good tree health. However, it could turn warm and dry again late this week. Mexican crop conditions are called good with rains.
Overnight News: Florida should get isolated showers or dry conditions. Temperatures will average below normal. Brazil should get scattered showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 124.00, 123.00, and 122.00 January, with resistance at 129.00, 131.00, and 134.00 January.

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